If you live in Alaska, you probably know about the Permanent Fund Dividend (PFD) – the money Alaskans receive every year from the state’s oil profits. This payment is a major help for many families, especially during cold months when heating and energy costs are high.
But in 2025, even though the PFD is higher than last year, there’s a lot of debate about how to keep it going in the future.
In this article, we explain in simple language what’s happening with the PFD this year, who can get the payment, and why its future is uncertain.
2025 PFD Payments Have Increased
Let’s start with the good news: the PFD for 2025 has increased by 30% compared to last year. This year, every eligible person will receive $1,702.
This amount is made up of two parts: $298.17 – meant to help with energy costs like heating and electricity.
$1,403.83 – your regular Permanent Fund payment.
This money can make a real difference for families, especially during Alaska’s long winters.
Who Can Receive the PFD in 2025?
The PFD is not given to everyone automatically. There are some conditions you must meet to qualify:
- You must have lived in Alaska for the full year before you applied.
- You must have been physically present in Alaska for at least 72 hours in the past two years.
- You must not have any serious criminal convictions in the last year. If you’ve had minor crimes, no more than two since 1997.
If you applied before March 31, 2024, your payment is expected to arrive by April 17, 2025.
Missed the deadline? You might still be able to get payments from previous years. If your application status is “Eligible-Not Paid” before April 9, 2025, you can claim the money online at the PFD website or by traditional mail.
Is the PFD Guaranteed Every Year?
The PFD program started in 1976, with the idea that all Alaskans should share in the state’s oil profits. But over the years, the government has also used the money to manage its budget problems.
That means when oil revenues are high, the PFD amount is also high. But when money is tight, the payments are reduced. This is exactly the concern in 2025. With lower oil income and increasing costs for things like public schools, the PFD might fall to less than $1,000 per person if no solution is found.
What Options Does Alaska Have?
Right now, Alaska’s leaders are discussing different ways to keep the PFD strong without emptying the state’s pockets. Here are the main ideas on the table:
1. Use Money from the Emergency Fund (CBR)
This might sound simple, but it’s not. It needs a two-thirds vote in the state Congress, and right now, the politicians are very divided. Just 11 representatives or 6 senators can block this idea.
2. Take More Money from the Permanent Fund
This option only needs a simple majority vote, which is easier to get. But there’s a big risk. If too much is taken out, the fund could shrink in the future, and credit rating agencies like Moody’s or S&P might lower Alaska’s rating. That would make it more expensive for the state to borrow money.
3. Increase Taxes
Some senators are pushing for this idea. Here are two proposals:
- Senate Bill 92 – Raise taxes on the oil company Hilcorp, expected to generate around $150 million per year.
- Senate Bill 112 – Change tax credit rules for oil companies, which could add another $190 million for PFDs or public services.
There’s also talk of adding taxes on online shopping, but that wouldn’t bring in a lot of money.
The Problem: Not Everyone Agrees
Governor Mike Dunleavy and the House of Representatives strongly oppose raising taxes. The Governor has even said he will veto any tax increase, which could block both Senate proposals.
As a result, it’s unclear whether the PFD will stay high, go down, or depend on what budget deal is finally reached.
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